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Herbal Tea Market

Asia Pacific is the largest herbal tea market and expected to witness substantial growth over the forecast period. This attributed to high consumption of tea in countries such as China, India, and Japan
Herbal Tea Market - Global Industry
Insights, Trends, Outlook, and
Opportunity Analysis, 2018-2026
Herbal tea is derived from dried leaves, nuts, barks, seeds, grasses, fruits, flowers,
and roots of various plants. There are several kind of tisanes or herbal teas that are
used for medicinal purposes. Herbal tea is consumed owing to its health benefits
such as improved digestive and immune systems. Some of the popular herbal teas
are green tea, peppermint tea, chamomile tea, ginseng tea, ginger tea, cinnamon
tea, and others. Increasing awareness related to health benefits of consumption of
herbal tea includes slowing aging process and reducing obesity. This is because
herbal tea is claimed to have anti-aging properties and ingredients that aid in
reducing weight. These are some of the key factors driving growth of the global
herbal tea market. Increasing prevalence of obesity is another factor expected to
propel demand for green tea. For instance, according to World Health Organization
(WHO), 2016, 39% of the adults above 18 years of age were overweight and 13%
were obese globally.
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Rising trend of consumption of ready-to-drink tea (RTD) is further fuelling growth of
the herbal tea market. Therefore, manufacturers are focusing on offering RTD herbal
tea, in order to expand their customer base. For instance, in January 2018, Teavana
Holdings, Inc. launched unsweetened strawberry apple green craft iced tea, which is
a green tea with lemongrass and fruit flavor. However, easy availability of substitute
products such as coffee is expected to hinder growth of the herbal tea market.
In 2016, green tea segment accounted for largest revenue share in the market and is
preferred by young adult demographics, owing to its benefits such as aiding in
weight maintenance. Lemongrass was the most widely consumed flavor and
exhibited high growth in 2016. This is owing to benefits of consumption of
lemongrass herbal tea, which includes reducing cholesterol level, aiding in
detoxifying body, and aiding in curing insomnia, respiratory disorders, and fever.
Herbal Tea Market Outlook
Asia Pacific is the largest herbal tea market and expected to witness substantial
growth over the forecast period. This attributed to high consumption of tea in
countries such as China, India, and Japan. Moreover, increasing awareness of
health benefits of consumption of herbal tea such as regulation of blood sugar and
growing tea industry are factors expected to propel growth of the herbal tea market
in Asia Pacific. For instance, according to Tea Board of India, production of green
tea in India was 1.19 billion kg in 2014–2015 which increased by 3% to 1.23 billion
kg in 2015–2016. Furthermore, increasing production of green tea is aiding in growth
of herbal tea market. For instance, according to Tea Board of India, production of
green tea in India was 14.89 million kg in 2014–2015 which increased to 19.19
million kg in 2015–2016.
North America was the second largest region in the global market in 2016, owing to
rising awareness among consumers to improve their health and wellness. According
to the Tea Association of the U.S., in 2017, the people in the country consumed over
84 billion servings of tea, out of which 13% was green tea.
Europe is expected to be a lucrative market for herbal team, owing to increasing
consumption of tea in this region. According to the Centre for the Promotion of
Imports from developing countries, tea consumption in Europe was pegged at 229
thousand tons in 2015. According to European Commission, U.K. held the highest
tea consumption of 113.40 tons followed by Germany, France, and Poland in 2015.
According to the German Herbal and Fruit Tea Trade Association (WKF), in 2013,
people in the county consumed 13 billion cups of herbal tea.
Herbal tea market is highly competitive with manufacturers adopting various
strategies such as new product launches, merger and acquisitions, and
collaborations to sustain their market position. For instance, Twining Crosfield and
Company Ltd. launched Berry Fusion, Lemon Delight, and Buttermint herbal tea in
November 2017. Sipwise Beverages Private Limited launched green tea and herbal
beverage range in May 2017. In February 2015, Honest Tea launched cinnamon
sunrise herbal tea and ginger oasis herbal tea. Unilever PLC acquired Pukka Herbs
Ltd., a herbal tea manufacturer in September 2017.
Some of the players operating in the global herbal tea market include Tata Global
Beverages Limited, Martine Bauer Group, Unilever PLC, Twining Crosfield and
Company Ltd., ITO EN Inc., Dilmah Ceylon Tea Company PLC, Mother Parkers Tea
& Coffee Inc., and Surya Herbal Ltd.
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